Tuesday's Radio & Media News - July 16, 2013

Hubbard to Purchase 10 Sandusky Radio Stations for $85.5 Million Hubbard Radio has entered into an asset purchase agreement to acquire 10 radio stations from privately held Sandusky Radio. "The acquisition expands Hubbard Radio by adding five radio stations in Seattle and five in Phoenix," says Hubbard's announcement of the deal. "This is an exciting opportunity to expand Hubbard Radio into two top 20 markets," says Hubbard Radio Board Chair Virginia (Ginny) Morris. "We have known and respected the Rau/White family, Sandusky's owners, for many years. We admire what they have accomplished and we are honored that they would agree to sell us these established stations. We are committed to maintaining the dedication to excellence and to community that Sandusky has made such an important part of their radio operations." A news release tells us that according to the latest Arbitron Radio Market Rankings, the Seattle-Tacoma area ranked as the 13th largest among all U.S. radio markets, with Phoenix ranked as the 14th largest. The five Seattle stations involved in the transaction are: Adult Standards KIXI-AM (880); "Movin' 92.5" KQMV-FM; "Alternative Talk 1150" KKNW-AM; "Warm 106.9" KRWM-FM; and "Click 98.9" KLCK-FM. The five Phoenix stations are: Classic Rock KSLX-FM (100.7); Active Rock KUPD-FM (97.9); Rock KDKB-FM (93.3); "AZ Gold 1440" KAZG-AM; and "NBC Sports 1060" KDUS-AM. Says Hubbard Radio President and CEO Bruce Reese, "Hubbard is excited about the chance to add these great stations to our existing operations in Chicago, Washington DC, Minneapolis/St. Paul, St. Louis and Cincinnati. Sandusky runs very successful radio stations, and we plan on continuing that precedent. We look forward to working with our new colleagues." Through the acquisition, Hubbard Radio will add 65 to 70 full time employees in each of the two markets. Reese said he expects no programming or personnel changes for any of the acquired stations. Hubbard Radio currently employs approximately 600 full-time employees. Sandusky Radio President Norman Rau tells us, "Hubbard Radio, a private family-owned business, holds very similar values as our business. Hubbard has nine family members directly involved in the Hubbard companies. We believe the future of our listeners, employees and our customers could not be in better hands. As a significantly larger broadcasting company, Hubbard can give the Sandusky stations a potential for growth and scale that Sandusky on its own just could not give them." The sale will end Sandusky's 36-year history as a radio broadcaster and allow it to concentrate on the continuing digital transformation of its local print and online newspaper and marketing franchises. Morgan Stanley is acting as financial advisors to Hubbard Radio in connection with the transaction and has issued commitments to provide debt financing for the acquisition. Under the terms of the asset purchase agreement, Hubbard Radio will acquire the radio stations for approximately $85.5 million. Other terms of the transaction were not disclosed. The sale is expected to be finalized upon FCC approval and other customary closing conditions. Jon Dillon Out at Dallas Classic Rock KZPS-FM Clear Channel Classic Rock "Lone Star 92.5" KZPS-FM, Dallas, afternoon host Jon Dillon is out after more than 23 years with the station. That much is confirmed, but many questions remain unanswered, including why the veteran of Dallas Rock radio dating back to 1969 was let go. The station confirms he's out but refuses further comment. Popular speculation centers on budget cuts amid rumors of "huge nationwide cuts" that are said to be coming "at the end of the month" throughout Clear Channel. The Dallas News PopCultureBlog calls Dillon "the voice of classic rock in Dallas when it was still ‘underground’." Dillon‘s career in Dallas radio dates back to 1969, when he was, for a while, the sole voice of KFAD-FM, followed by a stint at KRLD-AM and FM, "where he could be heard playing 'progressive rock' all the way down to Mexico. Then, in ’73, he began his legendary stint at KZEW-FM -- one of the first Zoo Freaks hired, and one of the last to leave 14 years later." In 1989 he took over middays at KZPS-FM, where he later moved to afternoons for a total of more than 23 years at the station. Dillon is a member of the Texas Radio Hall of Honor, but is no longer a Clear Channel employee. The rumors of coming Clear Channel cuts are picking up prominent mentions by reputable radio/media news sources. Morning Host Dave Ryan Extends with KDWB-FM/Minneapolis Clear Channel Minneapolis signs a new agreement with CHR-Top40 KDWB-FM morning personality Dave Ryan to renew and extend his relationship with the company. Show hosts Dave Ryan, Steve-O and Falen will continue to wake up the Twin Cities on KDWB-FM under a new, multi-year deal. Ryan debuted on KDWB-FM in 1993, and was joined by Steve O in 2006. Falen joined the "Dave Ryan in the Morning Show" last year. "Dave Ryan is a 20-year Twin Cities institution and I'm so glad he will continue to anchor mornings for KDWB," says Program Director Rich Davis. "He's a true talent who's hard work, entertaining topics and views on pop culture have kept him at the top of the ratings for so many years and make him a great talent for Clear Channel." Market President Michael Crusham tells us, "We are so excited that we have renewed the Dave Ryan Morning Show on KDWB. When you work with him everyday, you understand why he has been so successful for the past 20 years in Minneapolis. We are excited for the show's continued success in the future." And says Ryan, "We're just getting started! Seriously though, working at a legendary station like KDWB is an honor all by itself. I can't say enough about what a privilege it's been to be part of so many people's mornings for so long. From the people who hired me 20 years ago to the current management and staff at KDWB, I've worked with some of the very best people in the business." 'Follow the Money' Host Gets 20 Years for Ponzi Scheme Former "Follow the Money" host Patrick Kiley is sentenced to 20 years in federal prison for his role in a $194 million Ponzi scheme. Kiley has insisted that he is innocent. He was accused of.helping to sell a sham investment created by his longtime sidekick Trevor Cook, who was sentenced to 25 years in prison after pleading guilty to the scheme. Authorities say the Ponzi scheme left at least 133 people losing more than half of their net worth. Kiley's sentence is 180 months for 13 fraud charges and 60 months for two money-laundering charges to be served consecutively. Kiley, 75, had attracted 70% of the investors through his former "Follow the Money" radio program which was syndicated on as many as 200 stations at its peak. His audience was comprised of mostly conservative listeners and retirees. “Follow the Money” originated on the shortwave Worldwide Christian Radio. Kiley claims he was duped just as were the investors. A plea for leniency accompanied by a psychological evaluation with claims that Kiley's mother was abusive drew an angry response from his brother Michael O'Brien, another radio personality, who said in a letter to the court that the abuse claims were a "total fabrication" and that Kiley was "a bully." O'Brien wrote that Kiley "had a history of being just plain mean. I will not allow him to trash the memory of my mother or my father.” In January, Kiley was able to delay his sentencing, accusing his attorney at the time of misconduct and ineffective advocacy. Chief U.S. District Judge Michael Davis delayed the sentencing, appointed new attorneys to represent Kiley and ordered an independent psychiatric and physical evaluation. Broadcasters Foundation Names New Board Members The Broadcasters Foundation of America names four new members and a new officer to its Board of Directors. The new members were voted in during the recent Board meeting, held in New York City. They are Brian Cobb, President, CobbCorp; Bill Hoffman, President, Cox Media Group; Brian Lawlor, SVP of Television, E.W. Scripps TV Station Group and Dan Mason, President/CEO, CBS Radio. The new officer is Leo MacCourtney, President/CEO, Katz Television Group. "I am proud to welcome these highly accomplished broadcasters and industry leaders to our Board," says Broadcasters Foundation Chairman Phil Lombardo. "Their example of giving back to our industry by serving as a Board member or officer is inspiring. I hope it will motivate others who work in broadcasting to identify ways they can help advance our cause of delivering financial relief to our colleagues who are struggling under the harshest of circumstances." Marketron 'Network Connect' Achieves 'Milestone' Marketron announces "a milestone" for its Network Connect service -- a component of Marketron's Mediascape program that fully automates processing network orders, tracking creative media, managing revisions, and providing performance affidavits. The product is now actively being used by over 1,000 stations, which represents 153,411 orders and 5.2 million radio spots, says Marketron. "To continue to innovate and be the best at what we do, the right support is needed," says Townsquare Media EVP/CFO Stu Rosenstein. "Marketron's Network Connect enables us to be efficient and cost effective when it comes to processing network orders. Innovative products such as Network Connect are what help us continue to run our business well." Marketron President/CEO Jeff Haley tells us, "Marketron developed Network Connect to relieve traffic managers from burdensome tasks and free up their time to better benefit their stations. We are proud to have signed up our 1000th station and hope to share this product's benefits with more clients." Current clients include Cox Media Group, Univision Radio, Townsquare Media, Wilks Broadcasting, Cherry Creek Radio, Connoisseur Media and PMB Broadcasting. Chris Cooley Joining Redskins Radio Network Red Zebra Broadcasting signs former Washington Redskins tight end Chris Cooley to a multi-year deal, under which Cooley will join the Washington Redskins Radio Network as an in-game contributor. "Cooley's Corner" will be heard between quarters during each game. That starts with the pre-season opener in Tennessee on August 8. He joins former Redskins Hall of Famer Sonny Jurgensen, Rick "Doc" Walker and Brian Mitchell. Hall of Famer Sam Huff stepped down earlier this summer after 50 years. Says Redskins Radio Network Executive Producer Chuck Sapienza, "To add a talent and fan favorite like Chris to our team will add excitement to our broadcast and a level of unpredictability for our listeners." Red Zebra CEO Rick Carmean adds, "Chris has shown he has a true knowledge of the intricacies of the game and I look forward to having him share those with our listeners along the Redskins Radio Network." In addition to his duties for The Redskins Radio Network, Cooley will also be joining the Redskins Broadcast Network for commentary on various TV and web-based shows. NBC Sports Radio to Broadcast Live from Celebrity Golf Tourney NBC Sports Radio will broadcast live from this week's 24th Annual American Century Championship, a celebrity golf tournament. The event, owned and produced by NBC Sports and sponsored by American Century Investments, will feature live broadcasts of "Under Center with McNabb & Malone" (3-7pm ET) and Amani and Eytan (10pm-1am ET) on Thursday and Friday (July 18-19) from the Edgewood Tahoe Golf Course in Lake Tahoe, Nevada. More than 80 celebrities are scheduled to appear and compete for a total purse of $600,000, including NBC Sports Radio host Rodney Harrison ("Safety Blitz with Rodney Harrison") and NBC Sports Radio Senior Contributor Chipper Jones, Emmitt Smith, Charles Barkley, Aaron Rodgers, Ozzie Smith, Ray Romano, John Elway, Jerry Rice, Marshall Faulk, Goose Gossage and more. Proceeds from the tournament and related activities will benefit numerous charities, including Expect Miracles Foundation, and American Cancer Society's Making Strides Against Breast Cancer. To date, American Century Investments and NBC Sports have raised more than $4 million for local and national charities through the American Century Championship. (07-15-13) Clear Channel Websites to Premiere Jonas Brothers Music Video Clear Channel Media and Entertainment will debut a new music video -- for the Jonas Brothers' "First Time" -- in what CCME says will be the first time Clear Channel radio station websites will world premiere a music video. The new music video, we're told, will "world premiere exclusively" across CCME CHR-Top40 station websites nationwide and iHeartRadio, Wednesday (July 17). The "First Time" music video will also be promoted via the stations' Facebook pages. "First Time" is the Jonas Brothers first new single from their upcoming album since taking a three-year hiatus as a group. "We are extremely proud of this song and our new video," say the Jonas Brothers. "We are excited to partner with Clear Channel and iHeartRadio to do something that has never been done before. We can't wait for our fans to see our new work!" The new song debuted this week at #54 on MHBC's Total Popular Music Super Sixty. Mark Harris says, "Obviously, we can expect a big jump in airplay with the CCME promotion of the music video, and that leads us to expect a significant chart jump on our airplay-based weekly chart." Behind the Microphone: The Ins and Outs of Radio "Wild 106" KWWV-FM and "95.3 The Beach" KXTZ-FM. San Luis Obispo, Assistant PD and Production Director Danny Palacios is named Program Director of Buckley's Urban Oldies "Groove 99.3" KKBB-FM, Bakersfield, replacing Louie Cruz, who is now PD at Rhythmic AC "95.7 Kiss FM" KSSX-FM, San Diego ... Rhythmic CHR "Jammin' Z90" XHTZ-FM, San Diego, taps former market vet Rick Moorten for mornings starting July 31. Since leaving San Diego Moorten has been heard in Boise, Idaho, at "Wild 101" KWYD-FM where he hosted mornings ... "Gator Country" WWGR-FM, Fort Myers, Program Director Dave Hovel adds afternoons replacing Buzzy Ford, who exits for a non-radio job ... Hot AC "Mix 94.1" WHBC-FM, Canton, Ohio, morning co-host Rik Elliot moves to Classic Rock WOUR-FM, Utica, NY, as Production Director beginning July 29 ... Clear Channel CHR-Top40 "Channel 96.3" KZCH-FM, Wichita, promotes Assistant PD and afternoon host Tommy Castor to Program Director. He joined the cluster in March 2008, and had been APD and afternooner at "Channel 96.3" since October 2011, after a stint at Classic Rock sister "The Brew" KTHR-FM, as APD and midday host ... Greg Cypin joins "Hot 101.7" KHTH-FM, Santa Rosa, California, as afternoon host ... Country WFMB-FM, Springfield, Illinois, adds former CHR-Top 40 WZOK-FM, Rockford, morning co-host Andi Brooks as WFMB-FM morning co-host, joining in-place John Spaulding for "John and Andi in the Morning." Brooks takes over from station veteran Michelle Mitchell, who moves to Director of Development for Digital Assets for the cluster. Brooks will also double as Director of Promotions ... Kroeger Media's KZIU-FM, Walla Walla, Washington, is now Adult Variety Hits "106.9 Bob FM" as the newest affiliate of Envision's "Bob FM" format.